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§ 8411. Powers and duties of board

Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 24 Pa.C.S.A. EducationEffective: June 12, 2017

Purdon's Pennsylvania Statutes and Consolidated Statutes
Title 24 Pa.C.S.A. Education
Part IV. Retirement for School Employees (Refs & Annos)
Chapter 84. School Employees' Defined Contribution Plan (Refs & Annos)
Effective: June 12, 2017
24 Pa.C.S.A. § 8411
§ 8411. Powers and duties of board
Currentness
The board, in addition to its powers and duties set forth in Chapter 85 (relating to administration and miscellaneous provisions), shall have the following powers and duties to establish the plan and trust and to administer the provisions of this part:1
(1) The board may commingle or pool assets with the assets of other persons or entities.
(2) The board shall pay all administrative fees, costs and expenses of managing, investing and administering the plan, the trust and the individual investment accounts from the balance of such individual investment accounts, except as otherwise provided in this part or as the General Assembly otherwise provides through appropriations from the General Fund.
(3) The board may establish investment guidelines and limits on the types of investments that participants may make, consistent with the board's fiduciary obligations.
(4) The board shall have the power to change the terms of the plan as may be necessary to maintain the tax-qualified status of the plan.
(5) The board may establish a process for election to participate in the plan by those school employees for whom participation is not mandatory.
(6) The board may perform an annual or more frequent review of any qualified fund manager for the purpose of assuring it continues to meet all standards and criteria established.
(7) The board may allow for eligible rollovers and direct trustee-to-trustee transfers into the trust from qualified plans of other employers, regardless of whether the employers are private employers or public employers.
(8) The board may allow an inactive participant to maintain the participant's individual investment account within the plan.
(9) The board shall administer or ensure the administration of the plan in compliance with the qualification and other rules of the IRC.
(10) The board may establish procedures to provide for the lawful payment of benefits.
(11) The board shall determine what constitutes a termination of school service.
(12) The board may establish procedures for distributions of small accounts as required or permitted by the IRC.
(13) The board may establish procedures in the plan document or to promulgate rules and regulations as it deems necessary for the administration and management of the plan, including, but not limited to, establishing:
(i) Procedures by which eligible participants may change voluntary contribution amounts or their investment choices on a periodic basis or make other elections regarding their participation in the plan.
(ii) Procedures for deducting mandatory pickup participant contributions and voluntary contributions from a participant's compensation.
(iii) Procedures for rollovers and trustee-to-trustee transfers allowed under the IRC and permitted by the board as part of the plan.
(iv) Standards and criteria for providing not less than ten options which are offered by three or more providers of investment options to eligible individuals regarding investments of amounts deferred under the plan. The standards and criteria must provide for a variety of investment options and shall be reviewed in accordance with criteria established by the board.
(v) Standards and criteria for disclosing to the participants the anticipated and actual income attributable to amounts invested, property rights and all fees, costs and expenses to be made against amounts deferred to cover the costs and expenses of administering and managing the plan or trust.
(vi) Procedures, standards and criteria for the making of distributions from the plan upon termination from employment, one of which shall include an option for an annuity with a minimum interest rate of 2.5% to the extent commercially available, or death or in other circumstances consistent with the purpose of the plan.
(14) The board may waive any reporting or information requirement contained in this part if the board determines that the information is not needed for the administration of the plan.
(15) The board may contract any services and duties in lieu of staff except final adjudications and as prohibited by law. Any duties or responsibilities of the board not required by law to be performed by the board may be delegated to a third-party provider subject to appeal to the board.
(16) The board may provide that any duties of the employer or information provided by the participant to the employer be performed or received directly by the board.
(17) The board shall ensure that participants are provided with educational materials about investment options and choices.
(18) The provisions and restrictions of the act of July 2, 2010 (P.L. 266, No. 44),2 known as the Protecting Pennsylvania's Investments Act, shall not apply to the participants' individual investment accounts or the moneys and investments therein, but the board is authorized to offer to the plan participants investment vehicles that would be permitted under the Protecting Pennsylvania's Investments Act.

Credits

2017, June 12, P.L. 11, No. 5, § 113, imd. effective.

Footnotes

1
24 Pa.C.S.A. § 8101 et seq.
2
72 P.S. § 3837.1 et seq.
24 Pa.C.S.A. § 8411, PA ST 24 Pa.C.S.A. § 8411
Current through Act 10 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
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